Like other issues such as traffic and tourism, talk about the lack of affordable housing in Sedona is not a new one. In fact, there was even a city commission dedicated to the topic.

The city of Sedona is now once again looking into what options it has in terms of trying to solve this issue — or crisis as some have called it.

While it has been a topic of concern, over the years various councils have said they are not interested in being landlords. So is there middle ground? That’s what an informal group started by Linda and Ron Martinez — with support from the city — is looking into.

“There is a lot the city can do, short of being a landlord,” City Manger Justin Clifton said this week. “First and foremost we need partnerships. There are some entities that are well positioned to be landlords, even if the city isn’t one. But that’s not to say the city couldn’t participate in a partnership that would do just that.

“Aside from the landlord issue, there are a lot of things we can do that are different from being a landlord. But at the end of the day, this is a question about priorities. We’re always grappling with what the community’s highest needs are. Our priorities aren’t always found in our discussions but rather our budget. And right now our budget reflects that affordable housing is not a priority.”

Clifton said the group has talked with other business owners, brought in guest experts and has been using information that was created by the now defunct Affordable Housing Commission. He recently met with them to go over their findings and share with them what options the city has. While the issue of affordable housing is not a new one, Clifton said last year’s passing of a state bill allowing short-term rentals is already impacting local renters more than ever.

That’s coupled with the fact that business owners have been feeling the pinch for years due to a lack of available employees. In fact, a Sedona Chamber of Commerce survey distributed among its members last year listed the lack of available workforce as the top concern.

“I think [Senate Bill] 1350 has created a new sense of urgency,” he said.

“We’re all hearing stories about renters getting kicked out of their homes. Or, houses that are on the market that are being purchased by individuals who have declared early on that their intent is to turn them into short-term vacation rentals.”

On those same lines, he later added, “The bottom line, we should anticipate there’s more demand for short-term rentals than there is for long-term rentals — at least where we were before 1350 compared to now. Where that saturation point is, I don’t know.”

He said this is a concern because in order to be a complete community, its workforce needs to be near the top of the priority list.

He said they’re hearing from the merchants that they’re having a hard time hiring people. Despite offering higher wages and other incentives, it often comes down to luring people from Cottonwood, Camp Verde and even Flagstaff to work here. And, what happens to the housing market in Sedona — including rentals — impacts the rest of the valley.

“It’s a matter of moving the needle,” Clifton said. “I’m not saying we’ll get to a place where all of a sudden we have diverse housing options everywhere and we can meet all the needs of the workforce. All I’m saying is that we need to shift that needle from having less to having more.”

From the time the housing commission was in place to now, there has been talk of possibly putting in affordable housing on the Dells land — the 200-acre city-owned property across from the wastewater treatment plant on State Route 89A.

Clifton said that may be an option but generally it’s not a good idea to put people, who may already be struggling financially, away from all amenities forcing them to drive in for any of their needs. Plus, he said integrated communities tend to work much better than those that are not. So if the Dells is not an option, what about in town? He knows that may not be a popular decision with some within the community.

“There’s no such thing as having it all,” he said. “So with affordable housing, you’re not going to have it without making an investment and you’re not going to have it without putting it somewhere. We’d all like to be insulated from the impacts but still benefit. It doesn’t work that way. At the end of the day it’s about trade-offs.”

One of the reasons Sedona has so few multifamily properties is because of the density codes on the books, he said. Lessening those restrictions is one of a handful of ways the city can incentivize developers to look at building affordable housing. Others include waiving of fees as well as lessening restrictions such as height of a building and setbacks. But does that open the door for some to say it’s not fair to allow it for some and not others?

“What we’re trying to do here, across the board, is create a really good community,” Clifton said. “There’s give and take and negotiations. If there’s a developer helping us meet public priorities, I think we can be more flexible. It’s an exchange and not just one sided.”

For now, the citizen group will continue to meet on a regular basis while collecting data.

Clifton said he hopes to bring something before council in the next six months or so.

“At some point we have to decide within that general priority what it is we aim to do,” he said. “If this group continues to be productive, it might be that it comes up with some concrete recommendations.”

He added that while this process is still early, and there will be obstacles along the way, he remains cautiously optimistic that something can be done to address the housing issue.

“I know we can manage this issue better than we are,” he said. “But make no mistake, Sedona will probably always have challenges providing access to affordable housing. But with a real concerted effort, that access could look very different in two, five or 10 years. I know it’s possible.”
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